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ABC 7 On Your Side
by Talk Business & Politics
Monday, March 16th 2020

LITTLE ROCK, Ark. (Talk Business & Politics) — Representatives of Sun Paper Co., the $1.5 billion paper mill project slated for Clark County near Arkadelphia, have said the deal is officially terminated.

In a letter dated March 15, Andrzej Bednarski, International Project Director for Shandong Sun Paper Co., Ltd. notified Gov. Asa Hutchinson and AEDC officials that the project would not move forward, citing trade tensions, economic uncertainty, and the coronavirus outbreak as reasons for pulling the plug.

“It is with great regret that we inform you that our Sun Bio mill project in Arkadelphia, Arkansas will be terminated,” the letter reads. “The current situation related to the coronavirus outbreak and continued political friction and economic instability make it impossible for us to proceed with the project within the timelines set forth in the environmental permit. With the likelihood of the project uncertain, it is also fair to allow the State of Arkansas to use its resources for other ventures that have less uncertainty in the medium term. At this moment, the collective uncertainties make it a better choice for both of us to abandon the project.”

The project was to be located southwest of the intersection of Highway 26 and U.S. Highway 67 in Clark County near Arkadelphia. The pulp mill proposed to handle nominal linerboard production capacity of 4,400 machine dry tons per day at varying base weights. It could make boxes used for deliveries by companies like Amazon and FedEx and was considered a boon for Arkansas’ regional timber industry.